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Question 5E

Expert-verified
Intermediate Accounting (Kieso)
Found in: Page 302

Short Answer

Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. (a) $30,000 receivable at the end of each period for 8 periods compounded at 12%. (b) $30,000 payments to be made at the end of each period for 16 periods at 9%. (c) $30,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%

The present value of when the amount is receivable at the end of each period for 8 periods compounded at 12% will be $149029.20, at the end of each period for 16 periods at 9% will be $249,376.80 and present value payable at the end of seventh, eighth, ninth, and tenth periods will be $46,164.

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Step by Step Solution

Computation of present value when the amount is receivable at the end of each period for 8 periods.

Calculation of Present Value of the payment made at the end of each period

Computation of present value payable at the end of seventh, eighth, ninth, and tenth periods.

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